fbpx
Print this page
Thursday, 15 February 2018 13:13

Saputo wants global co-ops to rein in milk production

Written by  Sudesh Kissun
Lino Saputo Junior. Lino Saputo Junior.

Australia's new dairy kingpin is urging co-ops in Europe and New Zealand to rein in milk production and help stamp out price volatility.

Lino Saputo Junior, the chairman of Canadian dairy giant Saputo, told the Australian Dairy Conference this morning that co-ops have to show more leadership on this issue.

He urged co-ops to follow milk consumption patterns around the world.

“To improve the economics of dairying we need some leadership at the co-op level in the US, Europe and Oceania whereby they are not adding capacity and in order to fill that capacity they are urging suppliers to increase their milk production.

“Because somewhere along the line you will try to sell those solids (milk solids) and if you can’t sell those solids the prices will be depressed,” Saputo Junior says.

“And if prices are depressed you can’t pay a high price for those solids; it’s very simple.”

Saputo is a listed dairy processor with annual sales of $12 billion. It owns Warrnambool Cheese and Butter Company in Victoria since 2014 and is seeking regulatory approval to buy troubled Australian co-op Murray Goulburn.

 If the MG sale is approved, Saputo will leapfrog Fonterra and become Australia’s biggest milk processor.

Saputo Junior noted that Canada has a milk supply management system with very little price volatility.

He says milk suppliers need to be protected from price volatility.

“I’m hoping somewhere along the line there will be some common sense and some discipline that comes into this industry from the major co-ops in the US, Europe and NZ.

“Ultimately they must look at the best interest of the supplying community; first and foremost

 “And if they do that effectively then the economics will be much better in the system; there just has to be the right balance.”

More like this

NZ vs Aussie beef

OPINION: Your old mate hears that at a recent China Business Summit, PM Christopher Luxon delivered a none-too-subtle "could try harder" report card on the red meat industry regarding its exports to China - particularly when compared to Australia.

Oz farmers' election wishlist

Australian farmers advocate NFF says this year’s Federal Election will be a defining moment for Australian agriculture.

Featured

Australia develops first local mRNA FMD vaccine

Foot and Mouth Disease outbreaks could have a detrimental impact on any country's rural sector, as seen in the United Kingdom's 2000 outbreak that saw the compulsory slaughter of over six million animals.

NZ household food waste falls again

Kiwis are wasting less of their food than they were two years ago, and this has been enough to push New Zealand’s total household food waste bill lower, the 2025 Rabobank KiwiHarvest Food Waste survey has found.

Editorial: No joking matter

OPINION: Sir Lockwood Smith has clearly and succinctly defined what academic freedom is all about, the boundaries around it and the responsibility that goes with this privilege.

National

All eyes on NZ milk supply

All eyes are on milk production in New Zealand and its impact on global dairy prices in the coming months.

Machinery & Products

Leader balers arrive in NZ

Officially launched at the National Fieldays event in June, the Leader in-line conventional PRO 1900 balers are imported and distributed…

JDLink Boost for NZ farms

Connectivity is widely recognised as one of the biggest challenges facing farmers, but it is now being overcome through the…

New generation Defender HD11

The all-new 2026 Can-Am Defender HD11 looks likely to raise the bar in the highly competitive side-by-side category.